Google's New AI Travel Features Could Drive Major Growth In Search Volume: Analyst

On March 27, Alphabet Inc GOOG GOOGL Google introduced several new features across Search, Maps, and Gemini to enhance vacation planning, BofA Securities noted Monday.

In Search, users can generate detailed travel itineraries with AI Overviews, which can be saved as custom lists in Google Maps.

Google has also expanded hotel price tracking globally, letting users know when rates change.

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A new screenshot-powered feature on Google Maps uses Gemini AI to identify places saved through screenshots, enabling users to organize and visualize their travel ideas.

Additionally, Google has made Gemini’s Gems feature available to all users for free. Gems allows users to create personalized AI assistants tailored to specific tasks within Gemini.

Travel is a critical vertical for Google, as it drives high-intent searches across hotels and flights, implying categories with strong monetization.

The new AI features can drive incremental queries on Google’s platform by engaging users earlier in decision-making.

The analyst noted that rather than transactional keywords like “cheap flights to Paris,” users can ask broader questions such as “suggest scenic road trip routes in California.” This will extend the volume and diversity of search queries, allowing Google to deliver more relevant results and target more high-value commercial content.

The analyst noted that the integrations also improve Google’s ability to compete with emerging AI search platforms (such as ChatGPT and Perplexity), which have been improving travel planning capabilities.

Perplexity has partnered with Selfbook and TripAdvisor, Inc to enable users to book hotel reservations. The booking tool could have discounts for Pro users, and the company has suggested air and rental car booking tools could follow. TripAdvisor will provide information on reviews and experiences to help travelers make choices.

The analyst noted that AI companies are, again, partnering with travel aggregators over suppliers OTAs (Online Travel Agencies) (Expedia Group, Inc EXPE at 3 million) but are looking to expand rapidly.

The analyst said Gemini could partner with OTAs if the company pursues agentic AI tools this year. Google’s itinerary creation capabilities and Perplexity’s AI booking tools will also be built and offered by OTAs (including Booking and Expedia).

The OTAs can leverage their travel and customer data to offer competitive AI services, while their loyalty programs (unique discounts and points) could be competitive advantages.

For Airbnb, Inc., the company must best leverage its unique proprietary inventory, a key asset in an evolving AI world.

Price Action: GOOGL stock is down 0.64% at $153.34 at the last check on Monday.

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